Axis MF looks to raise Rs 1,500cr via equity hybrid fund's NFO

Axis Mutual Fund is looking to raise around Rs 1,500 crore through the new fund offer (NFO) of Axis Equity Hybrid Fund.

The fund will invest between 65 and 80 per cent in equity and equity related instruments, and the rest in debt and money market instruments.

"Axis Equity Hybrid Fund is a retail product. We are looking at participation of 70,000 retail investors and aims to garner around Rs 1,500 crore," Axis MF's managing director and chief executive officer, Chandresh Kumar Nigam, told reporters here.

The offer will open on July 20 and close on August 3.

Nigam said the NFO is aimed at investors looking to participate in the capital appreciation opportunities that equity investments provide, while limiting downside risk significantly using asset allocation and exposure to fixed income instruments.

"We believe this should be a core product in a customer's long term portfolio," he added.

The assets under management (AUM) of Axis MF currently stands at Rs 80,000 crore and Nigam said the company is targeting to cross the Rs 2 lakh crore mark in the next three years.